CPA Rockville – Want to stay ahead of the health care “side car” bill?  Here are a few things to keep in mind:

1) Watch for coverage changes.  If you’re uninsured and have health problems, you may become eligible for a new federal high-risk insurance pool this year.  Watch for information at http://www.hhs.gov.

2) Find a doctor now.  There could be shortages, as the reconciliation bill is ultimately expected to add 32 million people to the insured population.

3) Consider long-term care coverage.  Under the new provision, a new voluntary long-term care benefit that would pay cash out to people who become disabled will become available.  You will only get the benefit if you have paid premiums into the program for at least 5 years, and this probably will not become available until 2011 at the earliest.  Again, watch for info at http://www.hhs.gov.

4) Plan ahead for new tax rules.  There will be a new 10% levy on indoor tanning services starting in July.  Also, a $2,500/year cap will be placed on allowable contributions to a tax-free flexible spending account in 2013 (it was 2011 in the original Senate bill).

5) Prepare for Medicare changes.  Beneficiaries who pay for drugs in the doughnut hole coverage gap are eligible for a $250 rebate in 2010.  In 2011, that group will get 50% off brand name drugs, and after that the hole will get a little smaller each year, and should effectively be zeroed out by 2020.  In 2011, certain preventive care will be free as well.

6) Be prepared to be insured by 2014.  If you are uninsured, by 2014, you will likely be required to have insurance or pay a penalty.  You should start preparing yourself now for that additional cost in your budget.  Contacting a financial planner in Rockville now, may help you be ready by then.  Medicaid is going to be expanded to include lower incomes.  For those who make less than $43,000/yr, there will be government assistance to help buy a plan.